Discounted Cash Flow (DCF) Analysis Levered
Western Digital Corporation (WDC)
$60.83
+1.73 (+2.93%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
Revenue | 19,093 | 20,647 | 16,569 | 16,736 | 16,922 | 16,520.41 | 16,128.36 | 15,745.60 | 15,371.93 | 15,007.13 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 3,437 | 4,205 | 1,547 | 824 | 1,898 | 2,109.46 | 2,059.39 | 2,010.52 | 1,962.81 | 1,916.23 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -578 | -835 | -876 | -647 | -1,146 | -759.83 | -741.79 | -724.19 | -707 | -690.23 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 2,859 | 3,370 | 671 | 177 | 752 | 1,349.63 | 1,317.60 | 1,286.33 | 1,255.80 | 1,226 |
Weighted Average Cost Of Capital
Share price | $ 60.83 |
---|---|
Beta | 1.419 |
Diluted Shares Outstanding | 309 |
Cost of Debt | |
Tax Rate | 11.43 |
After-tax Cost of Debt | 3.31% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 9.457 |
Total Debt | 8,725 |
Total Equity | 18,796.47 |
Total Capital | 27,521.47 |
Debt Weighting | 31.70 |
Equity Weighting | 68.30 |
Wacc |
Build Up Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
Revenue | 19,093 | 20,647 | 16,569 | 16,736 | 16,922 | 16,520.41 | 16,128.36 | 15,745.60 | 15,371.93 | 15,007.13 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 3,437 | 4,205 | 1,547 | 824 | 1,898 | 2,109.46 | 2,059.39 | 2,010.52 | 1,962.81 | 1,916.23 |
Capital Expenditure | -578 | -835 | -876 | -647 | -1,146 | -759.83 | -741.79 | -724.19 | -707 | -690.23 |
Free Cash Flow | 2,859 | 3,370 | 671 | 177 | 752 | 1,349.63 | 1,317.60 | 1,286.33 | 1,255.80 | 1,226 |
WACC | ||||||||||
PV LFCF | 1,255.35 | 1,139.95 | 1,035.16 | 940 | 853.59 | |||||
SUM PV LFCF | 5,224.04 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 7.51 |
Free cash flow (t + 1) | 1,250.52 |
Terminal Value | 22,695.50 |
Present Value of Terminal Value | 15,801.40 |
Intrinsic Value
Enterprise Value | 21,025.44 |
---|---|
Net Debt | 5,355 |
Equity Value | 15,670.44 |
Shares Outstanding | 309 |
Equity Value Per Share | 50.71 |